I remember alot of hullabaloo over financial penalties against Md when they bolted for the Big 10 but seems to me the negotations were kept somewhat under the table - suits and counter suits. Does anyone remember the specifics of their exit deal with the ACC? Cant imagine they would have agreed to some longterm payback involving tv revenue.
In late 2012, the University of Maryland (“Maryland”) announced that it would exit the Atlantic Coast Conference (“ACC”) to join the Big 10 Conference (“Big 10”). Shortly thereafter, on November 26, 2012, the ACC filed suit against Maryland seeking to enforce the exit fee of the termination procedures as set forth in Section IV-5 of the ACC Bylaws. According to Section IV-5 of the ACC Bylaws, a withdrawing member shall be subject to a withdrawal payment in an amount “equal to three (3) times the total operating budget of the Conference (including any contingency included therein), approved in accordance with Section V-1 of the Conference Bylaws, which is in effect as of the date of the official notice of withdrawal.” In 2012-13, the ACC’s operating budget was $17,422,114.00. According to Section IV-5, Maryland would owe the ACC the total amount of $52,266,342.00.
After the ACC withheld Maryland’s television and bowl revenue, Maryland filed a countersuit against the ACC claiming the exit fee and associated ACC Bylaws are anticompetitive and “lack any legitimate economic justification.” Accordingly, Maryland sought recovery of the $16 million withheld by the ACC, $156,799,026.00 (i.e., three times the $52.3 million buyout—trebled under antitrust laws), and punitive damages.
On August 8, 2014, the parties announced they agreed to resolve the disputes pending against one another. Instead of paying the $52.3 million buyout, Maryland agreed the ACC is permitted to retain the $31.4 million that had been previously withheld from Maryland by the ACC. Maryland will not owe any additional funds. Maryland officially joined the Big 10 on July 1, 2014 and will compete in the Big 10 this season.
When MD moved to the Big I thought it was a bad decision based on the finances. Turned out MD leadership made a very good decision. Wish we had moved to the Big. Would have been good for Clemson me think.
Most had rather settle than fight out long legal battles, especially in the public eye. This will most likely be our (and others) way out, especially if 2 or 3 more teams are trying to do the same. Divide and conquer however, .. much more strength in numbers.
I believe I read the other day Nebraska, PennSt, Rutgers, (and maybe Maryland ?) all entered the Big10 with a partial share of the revenue for the first 6 years. Perhaps that’s because the conference helped finance their conference exits and/or athletic department debt. USC and UCLA with get 100% share when they join.